Notice:
We are OPEN, and due to COVID-19, we are happy to conduct consultations via video chat, phone, or email. Please don’t hesitate to call us if you have any questions!

Call Today 678.929.8921
Benefit from the Experience of Attorneys Bill and Valerie Sherman Former Assistant Attorney General, Assistant County Attorneys and Magistrate Judge

Can I Discharge My Short Sale Debt in a Bankruptcy?

Question: My wife and I live in Forsyth County. We bought an expensive house during the boom years. My 401(k) was doing great, my company just gave me a fat bonus and my wife had a great job. But the recession put us in a tough place financially. I lost a lot of money in my retirement account, I lost my job, and my wife left me for her tennis coach.

So we did a short sale for the house. But the house lost a lot of money; it was extremely underwater. It sold for nowhere near what we paid for it. In fact, it sold for less than $300,000.00 of what we paid for it. And now the bank wants to collect on the money it is owed. There's no way I can ever pay that back. The bank has sued me in Forsyth County state court for the money that I owe plus attorney's fees. And they added interest, late fees and other charges.

Can I put the money that I owe on the short sale of the house into a bankruptcy?

Answer: Yes, you can have debt from a short sale (or foreclosure) discharged in a bankruptcy filing. It can be discharged under a chapter 7 or under a chapter 13. Whether you can file a chapter 7 or 13 should be determined by a bankruptcy attorney after conducting a financial assessment.

Because of the decline in home prices over the last several years, we have many clients who need to discharge debt incurred from a short sale of their house.

About Us

When you need a top-rated Forsyth County bankruptcy lawyer, we'll be there for you.

When you need a fresh financial start, the Sherman Law Group will help you navigate the system. You deserve a fresh start. So when you need a bankruptcy attorney in Cumming to answer questions, just call us at 678-215-4106. We proudly serve the entire Atlanta metro area and North Georgia.

Categories: